Jessica's Furniture Store buys a sofa at a wholesale price of $111.00. If the markup rate at Jessica's Furniture Store is 65%, what is the total markup for the sofa in dollars?
Solution: Remember that a markup rate is a percentage of the wholesale price that a store adds to get a selling or retail price. The amount of markup can be found with the following equation: markup rate $\times$ wholesale price $=$ amount of markup Since the markup rate is a percentage, we have to convert it into a decimal first. Percent means "out of one hundred," so $65\%$ is equivalent to $\frac{65}{100}$ which is also equal to $65 \div 100$ $65 \div 100 = 0.65$ Now you have all the information you need to use the formula above! $0.65$ $\times$ $$111.00$ $=$ $$72.15$ The amount of markup on the sofa is $$72.15$.